Audit-Reporting Signals after Machine Prediction-Incremental Value
Description
H1: For a specified target-year recorded risk outcome, the audit-reporting indicator has a positive association after conditioning on the machine-risk rank and measured firm characteristics. H2: The conditional log-odds association of AuditSignal with a recorded outcome becomes more positive as RiskPredRank increases. The complete 2014–2025 dataset was assembled from the CSMAR and Wind financial databases and announcements published on the China Securities Regulatory Commission (CSRC) website. It contains 38,964 unique firm–target-year observations, including 16,107 in the 2021–2024 main test. The analytic file contains 96 historical machine inputs, three event labels, and audit flags for the preceding fiscal year. We checked numeric completeness of the machine inputs, firm-year uniqueness, the union defining the composite outcome, and the arithmetic of each two-year change; binary fields stored as text were converted to numeric. The analysis uses this complete annual dataset for 2014–2025.
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Institutions
- Guangzhou Huashang CollegeGuangdong, Guangzhou